Global Market: AI-driven chip rally stumbles as investors question lofty valuations after sharp selloff

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Global artificial intelligence stock rallies experienced a sharp setback last week. Investors are now reassessing expectations surrounding artificial intelligence spending optimism. The Philadelphia Semiconductor Index fell significantly, entering bear market territory after a strong year. Momentum investing also showed signs of fatigue, with several technology stocks declining. Upcoming earnings reports will provide further indications of artificial intelligence spending plans.